§ Mr. ElletsonTo ask the Chancellor of the Exchequer what guidelines govern the Inland Revenue's powers to make assumptions as to the annual amount of work undertaken by firms in the construction and building industries for cash payments; and if he will make a statement. [15386]
§ Mr. JackWhere business accounts have not been submitted to the Inland Revenue or, if submitted, the tax inspector is not satisfied that the full extent of the profits have been declared, the inspector may make an assessment to tax to the best of his or her judgment. The Revenue has not issued guidance specific to the construction industry, but its general guidance to inspectors is to estimate as reasonably and accurately as possible the likely income, cash or otherwise. In making estimated assessments, inspectors will take into account the facts and circumstances of each case—for example, profits agreed in previous years, trends in the particular trade of profession, specific evidence of the extent of the taxpayer's income and so on. Any assessment is open to appeal by the taxpayer to the independent appeal commissioners.